The MENA region's IPOs generated $2.5 billion in Q2 2025, primarily driven by Saudi Arabia's significant role.

The Middle East and North Africa (MENA) region saw a robust initial public offering (IPO) performance in the second quarter of 2025, raising a total of $2.5 billion from 14 deals. This marks a 4% increase compared to the previous quarter, with Saudi Arabia at the forefront of these activities, as per findings shared on Monday.

Saudi Arabia was notably active with 13 IPOs across sectors like transportation and healthcare, collectively amassing $1.9 billion. The most significant listing came from budget airline flynas on the Tadawul Main Market, contributing 44% to the total quarterly proceeds. This was followed by notable entries such as Specialized Medical Company with $500 million and United Carton Industries Company at $160 million.

MENA Region Sees Q2 IPO Activity Surge

In the UAE, Dubai Financial Market witnessed the entry of Dubai Residential REIT, which successfully raised $584 million. EY highlighted that this REIT is now the largest in terms of market capitalization within the GCC and stands out as the first pure-play residential leasing REIT in the area.

"Despite a cautious investor environment, strong growth has been evident," said Brad Watson, MENA EY-Parthenon Leader. "The sectoral diversity and milestone listings like Dubai Residential REIT illustrate extensive opportunities throughout the region."

The aftermarket performance showed variability: while five out of fourteen IPOs recorded gains above their offer price on debut, ten remained below it-indicating prevailing caution among investors. According to EY's observations, issuers are becoming more adept at timing offerings based on current market conditions.

The regional equity landscape displayed inconsistency over this period; however, Kuwait’s Boursa Premier Market Index led with significant gains of 17.2%.

A shift towards secondary offerings was observed during this quarter; they constituted 64.3% of IPOs compared to only 35.7% in Q1-suggesting an inclination towards shareholder exits rather than new capital generation amid existing uncertainties.

"KSA continues to drive IPO activity within MENA," stated Gregory Hughes, MENA EY-Parthenon IPO Leader. "Landmark transactions occurring within UAE exchanges demonstrate adaptation aimed at meeting demands from an expanding investor base."

The outlook for H2 2025 appears promising according to Akhbrna News insights-with expectations for listings from 14 companies including substantial representation by ten firms based in Saudi Arabia alongside potential contributions from non-GCC markets such as Egypt Tunisia Morocco.